Dye & Durham slashes Link’s (ASX:LNK) takeover bid by AU$700M

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Dye & Durham slashes Link’s (ASX:LNK) takeover bid by AU$700M

 Dye & Durham slashes Link’s (ASX:LNK) takeover bid by AU$700M
Image source: © Airdone | Megapixl.com

Highlights:

  • Link Administration shares closed strong, in line with the ASX All Technologies Index.
  • Dye & Durham has revised its offer for Link business acquisition.
  • Canadian firm, Dye & Durham, intends to obtain approvals on the acquisition by ACCC.

Digital solutions provider, Link Administration Holding Limited’s (ASX:LNK) share price closed 4.065% up AU$3.840 apiece on the ASX today. The share price movement was visible after Canadian Dye & Durham group cut its takeover offer for Link Group. Meanwhile Dye & Durham has also notified Link group of its intentions to provide ACCC (Australian Competition and Consumer Commission), an undertaking to obtain acquisition approval. Shareholders of LNK appear to be positive on the current development.

LNK share price in near term

Link Group’s share price has gained almost 10% in last five trading days on the ASX. However, in last month, LNK share price has lost more than 15%. Link shares have closed in line with ASX All Technology (XTX) Index, which is up 2.512% today.

Why is Dye & Durham interested in Link Group?

Under the agreement declared in December, Dye & Durham a cloud software company, agreed to acquire the Link Group. It was also interested to indirectly acquire Link Group's approximate 43% stake in PEXA Group Limited (ASX:PXA) which operated the leading digital property exchange network in Australia. 

 

Latest interaction between Dye & Durham with Link Group

  • Dye & Durham has considered providing an undertaking to ACCC to obtain its approval.
  • Considering the potential undertaking, present state of the financial markets and values of Link Group and PEXA shares, Dye & Durham has reduced its current offer price under the SID (Scheme Implementation Deed) to AU$4.30 per share from AU$5.50 per share.
  • Except this, Dye & Durham is not prepared to make any other amendments/alterations to SID and anticipates ACCC approval.

The Link board has agreed to consider Dye & Durham’s request.

Link Group's two unrelated business segments to Dye & Durham, include its Banking and Credit Management (BCM Business) and Funds Solutions Business. The BCM Business is expected to be divested before acquisition is complete. In consistence with the current SID, if Dye & Durham agrees to sell the BCM business, shareholders will become eligible to receive net consideration received from the sale after implementation of Scheme and up to 13 cents per Link share.

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